(AUSTIN) — Texas Comptroller Susan Combs reports the state took in $1.68 billion in sales tax in September, a 3.7 percent increase over September 2007.

“Growth in sales tax collections continued at a modest pace in the first month of fiscal 2009,” Combs said. “While growth remains positive overall, sectors such as construction, retail trade and restaurants are showing signs of slowing down.”

Combs sent $452.7 million in monthly sales tax payments to Texas cities, counties, transit systems and special purpose taxing districts, up 2 percent compared to last October. So far in calendar year 2008, local sales tax allocations average 6.2 percent higher than last year.

Combs sent sales tax allocations of $305.1 million to Texas cities, 1.4 percent more than October 2007. Calendar year-to-date, city sales tax allocations are up 5.4 percent. Texas counties received October sales tax payments of $28.6 million, up 2.6 percent compared to a year ago. Calendar year-to-date, county sales tax allocations are 7.4 percent higher than last year.

The 138 special purpose taxing districts throughout Texas received $16.9 million in sales tax, up 15.3 percent compared to last October. So far this year, sales tax allocations to special purpose districts are up 17.9 percent compared to 2007.

Ten local transit systems received $102 million in October sales tax allocations, up 1.8 percent compared to a year ago. Year-to-date, transit sales tax revenues are up 6.9 percent.

September state sales tax collections and October allocations of local tax revenue represent sales that occurred in August and were reported to the Comptroller in September.